SCR seeks rationalisation of power tariff in A.P. to ease burden on Railways

Senior Divisional Electrical Engineer of the Vijayawada Railway Division, Ch. Dinesh Reddy appealed to the AP Electricity Regulatory Commission (APERC) to direct the State power utilities to rationalise the tariffs charged by them, by considering the fact that the Railways was not a profit-driven entity and the Electricity Act, the National Tariff Policy and Ministry of Power’s directives advocated cost-reflective tariffs and reduction of cross-subsidies, especially for deemed licensees (like the Railways). 

Making submissions on behalf of the South Central Railway (SCR) at a public hearing conducted by the APERC on the Annual Revenue Requirement (ARR) filings of the DISCOMs for 2026-27, here on Thursday, Mr. Dinesh Reddy noted that the SCR has felt the need to buy power from generators / traders of its choice (open access) for a long time as a statutory right under Section 42 of the Electricity Act, 2003 because the average tariff charged by AP DISCOMs was the highest in five States but was unable to exercise the option due to pending court cases. 

He stated that the average unit price of electricity in A.P. was ₹9.30 compared to ₹7.03 in Telangana, ₹6.74 in Chhattisgarh, ₹6.29 in Odisha and ₹5.79 in Kerala. Power was available at ₹6.53 in Maharashtra and ₹6.16 in Karnataka under open access. He suggested that the existing tariff under HT-IV(D) Railway Traction category in A.P. should be reviewed and rationalised to enable the Railways to reduce operational costs thereby easing the burden on public and supporting ongoing electrification and infrastructure upgrades. 

A competitive traction tariff in line with open access States, particularly Odisha and Telangana, was needed to reduce the burden caused by high tariffs, he said, pointing out that they were higher by ₹3.10 to ₹3.40 per unit compared to ₹6 to ₹6.50 charged in 14 other States. Fairness in tariff treatment was essential to align with national policy and operational viability and being a bulk consumer of electricity and prompt payer of energy bills, the Railways ought to have a rationalised tariff schedule, Mr. Dinesh Reddy stressed.